Help Save & Exh 4 Check my King's Road recently acquired all of Oxford Corporation's stock and is now consolidating the financial data of this new subsidiary. King's Road paid a total of $1,080,000 for Oxford, which has the following accounts: Accounts receivable Inventory Land Buildings Equipment Liabilities Fair Value $ 148,000 189,000 182,000 245,500 259, 250 (230,000) Tax Basis $ 148,000 189,000 182,000 198,000 194,000 (230,000) a. What amount of deferred tax liability arises in the acquisition? b. What amounts will be used to consolidate Oxford with King's Road at the date of acquisition? c. On a consolidated balance sheet prepared immediately after this takeover, how much goodwill should King's Road recognize? Assume a 30 percent effective tax rate. Complete this question by entering your answers in the tabs below. Required A Required B Required C What amount of deferred tax liability arises in the acquisition? Deferred tax liability Prey 4 of 7 Next > Check my work 6 ts Mighty Company purchased a 60 percent interest in Lowly Company on January 1, 2017, for $528,300 in cash. Lowly's book value at that date was reported as $777,500 and the fair value of the noncontrolling interest was assessed at $352,200. Any excess acquisition-date fair value over Lowly's book value is assigned to trademarks to be amortized over 20 years. Subsequently, on January 1, 2018, Lowly acquired a 20 percent interest in Mighty. The price of $360,000 was equivalent to 20 percent of Mighty's book and fair value. Neither company has paid dividends since these acquisitions occurred. On January 1, 2018, Lowly's book value was $1,010,500, a figure that rises to $1,059,000 (common stock of $300,000 and retained earnings of $759,000) by year-end. Mighty's book value was $1.80 million at the beginning of 2018 and $1.90 million (common stock of $1 million and retained earnings of $900,000) at December 31, 2018. No intra-entity transactions have occurred and no additional stock has been sold. Each company applies the initial value method in accounting for the individual investments. Book Print a. Prepare worksheet entries which are required to consolidate these two companies for 2018? b. What is the net income attributable to the noncontrolling interest for this year? Complete this question by entering your answers in the tabs below. Required A Required B Prepare worksheet entries which are required to consolidate these two companies for 2018? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list C Prev 6 of 7 Next >